easyJet has introduced the signing of a brand new five-year mortgage facility price over £1.4 billion.
The deal is underwritten by a syndicate of banks and is partially supported by UK Export Finance beneath its Export Growth Assure scheme.
This system for industrial loans is on the market to qualifying UK firms, doesn’t carry preferential charges or require state help approval, however does include some restrictive covenants together with round dividend funds.
Nonetheless, the restrictions are suitable with its present dividend coverage, the low-cost service stated.
This five-year facility might be secured on plane upon drawing and can considerably lengthen and enhance debt maturity profiles and strengthen the steadiness sheet by rising the extent of accessible liquidity, an announcement added.
easyJet added that, in the course of the first quarter of the yr, it is going to repay and cancel a part of its shorter-term debt, specifically a completely drawn revolving credit score facility of $500 million and loans price round £400 million.
This can release numerous plane property to additional strengthen the steadiness sheet, the service stated.
Johan Lundgren, easyJet chief government, stated: “This facility will considerably lengthen and enhance easyJet’s debt maturity profile and enhance the extent of liquidity obtainable.
“easyJet has taken swift and decisive motion, having now secured greater than £4.5 million in liquidity for the reason that starting of the pandemic.
“The mortgage facility, supplied on industrial phrases, displays constructive and collaborative work between easyJet, a number of banks and UK Export Finance.”
He added: “With our unmatched brief haul community and trusted model, easyJet is effectively positioned as prospects return to the skies in 2021.”
British Airways secured an analogous mortgage, valued at £2 billion, earlier this month.